Egypt Raises Gas Prices For Energy-intensive Industries

Egypt has raised natural gas prices for several energy-intensive industries starting in May, according to a ‌prime ministerial decree published on Sunday.

The government has already raised domestic fuel prices by up to 17 per cent in March in response to soaring global energy costs, and ⁠is seeking to reduce fuel and electricity subsidies under an $8 billion programme agreed with the International Monetary Fund.

The decree raised the price of gas by an average of $2, reaching $14 per million British thermal units for cement factories, $7.75 for iron and steel, ‌non-nitrogen ⁠fertilisers and petrochemicals, and between $6.50 and $6.75 for other industrial activities and petrochemical plants producing ethane and propane mixtures.

The increases do not apply to ⁠consumers, whose gas supply contracts already include pricing formulas, the decree said.

Egypt’s energy import bill has ⁠more than doubled, while monthly natural gas import costs have nearly tripled since the ⁠outbreak of the U.S.-Israeli war with Iran, with increased reliance on LNG imports or regional producers.